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Herding behaviour in digital currency markets: An integrated survey and empirical estimation

This paper reviews the empirical literature on the highly popular phenomenon of herding behaviour in the markets of digital currencies. Furthermore, a comparison takes place with outcomes from earlier studies about traditional financial assets. Moreover, we empirically investigate herding behaviour...

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Autor principal: Kyriazis, Nikolaos A.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7452385/
https://www.ncbi.nlm.nih.gov/pubmed/32904208
http://dx.doi.org/10.1016/j.heliyon.2020.e04752
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author Kyriazis, Nikolaos A.
author_facet Kyriazis, Nikolaos A.
author_sort Kyriazis, Nikolaos A.
collection PubMed
description This paper reviews the empirical literature on the highly popular phenomenon of herding behaviour in the markets of digital currencies. Furthermore, a comparison takes place with outcomes from earlier studies about traditional financial assets. Moreover, we empirically investigate herding behaviour of 240 cryptocurrencies during bull and bear markets. The present survey suggests that empirical findings about whether herding phenomena have made a significant appearance or not in cryptocurrency markets are split. The Cross-sectional absolute deviations (CSAD) and Cross-sectional standard deviations (CSSD) approaches for measuring herding tendencies are found to be the most popular. Different behaviour is detected in bull periods compared to bear markets. Nevertheless, evidence from primary studies indicates that herding is stronger during extreme situations rather than in normal conditions. However, our empirical estimations reveal that herding behaviour is evident only in bull markets. These findings cast light on and provide a roadmap for investment decisions with modern forms of liquidity.
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spelling pubmed-74523852020-09-03 Herding behaviour in digital currency markets: An integrated survey and empirical estimation Kyriazis, Nikolaos A. Heliyon Article This paper reviews the empirical literature on the highly popular phenomenon of herding behaviour in the markets of digital currencies. Furthermore, a comparison takes place with outcomes from earlier studies about traditional financial assets. Moreover, we empirically investigate herding behaviour of 240 cryptocurrencies during bull and bear markets. The present survey suggests that empirical findings about whether herding phenomena have made a significant appearance or not in cryptocurrency markets are split. The Cross-sectional absolute deviations (CSAD) and Cross-sectional standard deviations (CSSD) approaches for measuring herding tendencies are found to be the most popular. Different behaviour is detected in bull periods compared to bear markets. Nevertheless, evidence from primary studies indicates that herding is stronger during extreme situations rather than in normal conditions. However, our empirical estimations reveal that herding behaviour is evident only in bull markets. These findings cast light on and provide a roadmap for investment decisions with modern forms of liquidity. Elsevier 2020-08-20 /pmc/articles/PMC7452385/ /pubmed/32904208 http://dx.doi.org/10.1016/j.heliyon.2020.e04752 Text en © 2020 Published by Elsevier Ltd. http://creativecommons.org/licenses/by-nc-nd/4.0/ This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
spellingShingle Article
Kyriazis, Nikolaos A.
Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title_full Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title_fullStr Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title_full_unstemmed Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title_short Herding behaviour in digital currency markets: An integrated survey and empirical estimation
title_sort herding behaviour in digital currency markets: an integrated survey and empirical estimation
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7452385/
https://www.ncbi.nlm.nih.gov/pubmed/32904208
http://dx.doi.org/10.1016/j.heliyon.2020.e04752
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